The Holistic Effect of Brand Innovativeness and Value Co-creation on the Relationship Between Perceived Value, Brand Trust and Brand Loyalty

The aim of this article is to examine the effects of brand innovativeness (BI) and value co-creation (VCC) on the relationships between trust, perceived value (PV) and brand loyalty (BL), drawing on signalling theory. We collected data in 2020 from 403 smartphone users through Amazon MTurk and tested hypotheses using covariance-based structural equation modelling (CB-SEM). We found that BI as a signal initiator has a positive effect on VCC, PV and brand trust (BT). While VCC as a signal strengthener has a positive effect on PV and BT, VCC has no effect on BT. PV and BT also affect BL positively. Furthermore, this article broadens brand literature through showing how the holistic effects of BI and VCC can enhance BT, PV and BL. To the best of the authors’ knowledge, this is the first article to empirically focus on the holistic effects of BI and VCC on brand-specific consequences. Specifically, the holistic effects of BI and VCC foster the customer-brand relationship. Marketers should create unique innovations that encourage customers to participate in VCC; thereby, the holistic effects of BI and VCC will enhance positive attitudes on BT, PV and BL.